Correlation Between HeBei Jinniu and Guangzhou Boji
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By analyzing existing cross correlation between HeBei Jinniu Chemical and Guangzhou Boji Medical, you can compare the effects of market volatilities on HeBei Jinniu and Guangzhou Boji and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HeBei Jinniu with a short position of Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and Guangzhou Boji.
Diversification Opportunities for HeBei Jinniu and Guangzhou Boji
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between HeBei and Guangzhou is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical and HeBei Jinniu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HeBei Jinniu Chemical are associated (or correlated) with Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of HeBei Jinniu i.e., HeBei Jinniu and Guangzhou Boji go up and down completely randomly.
Pair Corralation between HeBei Jinniu and Guangzhou Boji
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 1.99 times more return on investment than Guangzhou Boji. However, HeBei Jinniu is 1.99 times more volatile than Guangzhou Boji Medical. It trades about 0.27 of its potential returns per unit of risk. Guangzhou Boji Medical is currently generating about -0.12 per unit of risk. If you would invest 468.00 in HeBei Jinniu Chemical on November 1, 2024 and sell it today you would earn a total of 94.00 from holding HeBei Jinniu Chemical or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. Guangzhou Boji Medical
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| Guangzhou Boji Medical |
HeBei Jinniu and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and Guangzhou Boji
The main advantage of trading using opposite HeBei Jinniu and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu position performs unexpectedly, Guangzhou Boji can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangzhou Boji will offset losses from the drop in Guangzhou Boji's long position.| HeBei Jinniu vs. Beijing Kaiwen Education | HeBei Jinniu vs. Queclink Wireless Solutions | HeBei Jinniu vs. Shenzhen Centralcon Investment | HeBei Jinniu vs. Beijing Kingsoft Office |
| Guangzhou Boji vs. HeBei Jinniu Chemical | Guangzhou Boji vs. Double Medical Technology | Guangzhou Boji vs. Hengli Petrochemical Co | Guangzhou Boji vs. Sino Medical Sciences |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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